Welshman Jones makes the step up from head coach after Philippe Saint Andre's decision to stand down. The Frenchman will remain in charge until the end of the current campaign before handing over to Jones.
Now the former Ebbw Vale star will join 2005 Grand Slam winning coach Mike Ruddock as a coach out-right in the Guinness Premiership.
Saint Andre added: "I'm delighted that Kingsley will be taking over when I leave. I brought Kingsley to Sale in 2004 and he is passionate and determined to achieve success. I'm certain that the future of the club is in safe hands."
Saint Andre joined the Sharks in May 2004 but has decided it is time to take on a fresh challenge. He said: "The last five years have been very exciting and I'm proud of the achievements of the team.
"Finishing top of the Guinness Premiership and then winning the final against Leicester in 2005/2006 was the highlight for me.
"I would like to thank the supporters of Sale Sharks who have shown great kindness and loyalty to me and my family during my time at the club.
"I'm totally committed to achieving further success at the club. With the squad of players and coaching staff, I hope to repay the support of the fans by winning a major trophy this season."